Geplaatst op

Untaxed kilometer reimbursement needs to be raised for cyclists

Giving cyclists the same kilometer reimbursement as vehicles is outdated in this day and age. Expanding on the kilometer reimbursement for cyclists and other environmentally friendly means of transport will contribute to the governments ambitions to get people out of their cars, and on their bicycles.

Last month the administration revealed it was spending an additional 100 million euro for cycle lanes and cycle parking, with the intention of getting 200.000 business drivers out of their cars before the end of this administration cycle. But only facilitating is not enough to kick start change.

Financial incentive

The tax free kilometer reimbursement for business travel with any transport has been at €0,19 cent per kilometer since 2004. If you want to get commuters out of their cars you will have to trigger them on a financial level.

In previous years we have shown that by differentiating in taxes and subsidies the business commuter is more inclined to take less polluting means of transport. Case in point, 6% of our total managed fleet is electric.

Sustainability targets

In an inquiry of our corporate customers, including Siemens Netherlands, it appears that there is willingness to increase the reimbursement if it was tax free and had a positive impact on the sustainability targets and Co2 requirements. This increase would then also be(partially) applicable for alternative means of transport that are also more environmentally friendly. Such as electric and hybrid cars, carpooling, Public transport and the (electric) bicycle.

Edwin van Dusseldorp, Finance Project manager of Siemens Netherlands says the following: “If the government would allow a tax free reimbursement on sustainable means of transport this would provide a nice incentive to, for example travel to work on a bicycle. Additionally in our current policy we see that employees are stimulated in making (sustainable) choices by a financial incentive. This delivers a positive impact on our sustainability targets.”

Thanks to technological advancement is registering a transport type no longer a challenge. With the right tooling and a modern policy it’s possible to create a variable, tax free base for business travel to stimulate employees into making sustainable choices.